No. 318 · Your own mind · Economics
Scarcity
When something seems scarce, we want it more and think about little else.
In the Almanac
“Queues at the pumps”, 1973 · “Oatly”, 2016–2018
Both stories in full, three ways to use it and where it misleads.
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Questions
What is Scarcity?
Scarcity is the basic economic fact that wants exceed resources, but it is also a mental state. When something feels scarce, whether time, money, or a product, we value it more and our thinking narrows. The 1973 oil embargo sparked panic lines, and limited availability helped make Oatly a sought-after brand.
How do you use Scarcity?
When a deadline or limited offer pushes you, pause and ask whether scarcity is inflating the value. Use constraints on purpose, such as timeboxing, to sharpen focus. When influencing others, use scarcity honestly rather than inventing it.
When does Scarcity matter?
Scarcity is one of the 31 mental models for your own mind, the situations where you ask: Is my own thinking leading me astray? Within that, it belongs to “Feelings that steer you”, alongside Deprival-Superreaction Tendency, Fear and Freudian Slip.
What is an example of Scarcity?
Two stories show it at work: Queues at the pumps (1973) and Oatly (2016–2018). Both are told in full in The Mental Models Daily Almanac, which has two stories for each of its 365 models.
Which mental models are related to Scarcity?
Supply and Demand, Deprival-Superreaction Tendency and Social Proof. Scarcity itself comes from economics.